Quarterly comments, page-41

Gazza,

I'll help you a little more.

The reference to the block model is very significant - basically what they are saying is that the grade of blocks is outperforming the model. Also the volume of ore is outperforming too which is probably due to there being more ore in blocks than was modelled and some ore in blocks designated as waste.

Remember historical open pit production was at a grade of 3.6g/t. The previous reserve for the open pit was 3.4g/t. It changed to 2.8g/t around 2010. Not sure why, it wasn't spelt out but probably due to more conservative assumptions and some new drilling interpretation.

Obviously there is huge difference between 2.8 and 3.4 (or 3.6). I suggest the real grade will be perhaps somewhere in between but this would be quite a big deal, particularly because higher grade generally means higher recovery.

If the mine actually performs at the previous mining grade or the previous reserve, it would be huge - I doubt this will happen. But the point is that the June quarter grade of 2.6g/t and recovery of 83% most probably has significant upside from here.

Cheers.